ON July 27, the Economy Ministry published the first phase of the National Energy Transformation Roadmap (NETR), with the goal of efficiently overseeing the energy transformation project. NETR demonstrates that the government is committed to facilitating the country’s energy transformation.

NETR Phase 1 outlines the strategic objectives of the government to foster the growth of the green energy market and enhance future capabilities. This is achieved through the identification of 10 flagship catalyst projects, which are centred around six key energy transition pillars: energy efficiency, renewable energy, hydrogen, bioenergy, green mobility, and carbon capture, utilisation, and storage.
 
Nevertheless, it appears that NETR Phase 1 lacks comprehensive coverage of certain aspects, such as the subsequent actions to be undertaken or the precise measures required for the successful execution of the flagship projects. The second phase, scheduled for a later date, will focus on many key aspects, including the low-carbon trajectory, the composition of the national energy portfolio, and targets for reducing emissions.
 
Malaysia may be able to speed up the decarbonisation process and reach net-zero emissions by 2050 by realising the NETR. However, attaining ambitious energy transition goals in a shorter time frame will present formidable challenges and demand significant financial resources. The proposal looks overly favourable to the point of implausibility.
 
Hence, more detailed and thorough actions will be required to complete that task. The study of the nation’s major economic sectors and the necessary emissions trajectory is significant in drawing out a potential scenario for Malaysia to realise its energy transition aspirations.
 
Basically, the notion of energy transition encompasses the transformation of an energy system that is predominantly reliant on fossil fuels into one that is characterised by the utilisation of clean and renewable energy sources. To accomplish this objective, big investments are necessary, as there are significant prospects for the development of the outlined projects, which may be undertaken by both domestic and international investors.
 
The initial stage of the NETR implemented a series of 10 initiatives with the objective of improving investment, promoting employment growth, and attaining an annual reduction of more than 10 million metric tonnes of CO2 emissions.
 
Companies that align their products and services with Malaysia’s energy transition objectives have the potential to prosper and make significant contributions to the nation’s economic and environmental goals. Moreover, such companies can facilitate the generation of employment opportunities within the clean energy industry.
 
The NETR initiative provides insights into the potential strategies that Malaysia might use in order to achieve a sustainable energy future that is inclusive and equitable for all stakeholders. The delay in the implementation of clean energy solutions will lead to considerably elevated expenses, encompassing the mitigation of climate consequences and the subsequent deployment of clean energy technologies.
 
Therefore, it is crucial for Malaysia to expeditiously implement steps for the transition, and the NETR effort represents a noteworthy commencement. It is anticipated that the incentive funding and other support measures will be crucial in facilitating the expeditious progress of Malaysia’s energy transformation and putting Malaysia on a path to potentially attaining net-zero emissions by 2050. – August 23, 2023.

* Dr Izyan Munirah Mohd Zaideen is senior lecturer at the Faculty of Maritime Studies, Universiti Malaysia Terengganu.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.